Faroe Petroleum’s Kvalross exploration well is unsuccessful

Faroe held a 40% interest in the exploration well which was operated by German oil major Wintershall.

Faroe has two more wells planned.

Faroe Petroleum (LON:FPM) has revealed that the Kvalross exploration well, in the Barents Sea, has not been successful.

The well was drilled to a depth of 2,917 metres an target two independent targets.

In the first, the Kvalross target, hydrocarbons were observed but the reservoir quality was not deemed to be good.

The second target, called Kvaltann, was found to have good quality reservoir sands but was ‘water wet’.

So, no commercial discovery was made.

Faroe held a 40% interest in the exploration well which was operated by German oil major Wintershall.

The AIM quoted oil company highlighted that the well programme is expected to be complete some 23 days ahead of schedule, and therefore it is said that the well will be delivered ‘significantly below budget’.

Graham Stewart, Faroe Petroleum chief executive, said: "Whilst the results for the Barents Sea Kvalross well are disappointing, we are pleased that the well has been drilled significantly below budget and to have encountered hydrocarbon shows which will add to the large data bank we now hold over this prospective frontier area.”

Faroe has two more wells planned in its current exploration programme.

“Ntorya-3 is ready to go but want to make sure, we maximise as many targets as we possibly can.”

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